Jun 18, 2022|

Seven Highlights of 2022 JD618 Grand Promotion

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by Vivian Yang and Doris Liu

“JD.com is ready to embrace the era of supply chain value,” said Lijun Xin, CEO of JD Retail, at the JD618 media briefing session on June 18, noting that the outbreaks of Omicron in China have led the whole society to recognize the value of supply chain in an explicit and profound way. JD.com would continue to open its supply chain infrastructure, technologies, expertise and capabilities to push forward the development of the whole industry, he added.

Lijun Xin, CEO of JD Retail at the JD618 media briefing session

The 19th 618 Grand Promotion  this year is themed “Responsible Supply Chain.”  Several key highlights are revealed through the shopping festival’s consumption data from 8 p.m. on May 31 to date, all of which provide insight into consumption in the second half of the year.  The shopping festival will officially end on June 20.

1. Service quality matters

Good services weigh increasingly heavily, if not being a decisive factor, in people’s shopping choices. At this year’s shopping festival, consumers gave greater approval to JD’s premier customer services, of which JD offers a total of 185, covering the entire consumption process before, during and after sales.

Robot vacuums and air purifiers that promise 30-day free trial and “replacement over repair within 180 days” have seen sales jump by 200 percent. Sales of cracked phone screen insurance increased more than 300 percent YoY, and over 80 percent of users who purchased the insurance opted for an unlimited repair guarantee.

Boosted by JD’s free tire-change service and three-year quality guarantees, the transaction volume of tire products on JD Auto surged 300 percent YoY.

People’s awareness of their health has increased dramatically. The early screening service of critical illnesses is among the most popular health services ordered on JD Health, with its transaction volume rocketing by 50 times YoY. Sales of furniture products in J Shop, JD’s omni-channel fashion and home stores, that were tagged with a prepaid insurance settlement, increased over 160 percent. The transaction volume of online glasses ordering services increased six-fold YoY, to name just a few.

2. New products prevail

Consumers showed strong interest in the new generation of products with novel technologies, designs, and functions, or those that can bring brand new experiences, propelling manufacturers to present products with better quality and ideas. On the Super Day of the consumer electronics category during JD618, the transaction volume of gaming laptops priced over RMB 10,000 yuan grew by 120 percent compared with the same period last year.  The average growth rate of emerging home appliances such as gaming TVs, fresh-air conditioners and smart vacuum cleaners increased over five-fold YoY.

Transaction volume of new outdoor and camping products rose by 300 percent, and sun protection clothing was up six-fold YoY.

3. Omni-channel accelerates

JD’s on-demand retail services including the Shop Now program and JDDJ are providing greater nearby amenities for consumers from online to offline. Deeply connected with more than 150,000 offline stores in over 1,700 cities and counties across China, the omni-channel solution is empowering brick-and-mortar stores of all product categories with richer marketing plans and one-hour delivery services to customers within 3-5 kilometers radius.

During the 618 period, JD also opened its physical home appliance flagship stores in 12 Chinese cities, such as Nanjing, Yangzhou, Wuhu, Liuzhou and more, further expanding shopping experiences and tangible engagement with a broader range of consumers.

The transaction volume of JD Health’s medicine procurement for small and medium-sized drug stores and clinics increased 48 percent, with over 90 percent of these procurers coming from the county or lower-level regions.

4. SMEs and merchants in recovery

As the coronavirus has brought unprecedented uncertainties, JD introduced 30 measures for JD618 to support SMEs and merchants’ businesses and contribute to the solid development of the real economy.

SMEs’ ROI was increased by more than 20 percent during the shopping festival. Transaction volume of over 27,000 brands and 30,000 stores partnered with JD Super, JD’s omni-channel supermarket, saw an increase of five times YoY . In particular, the omni-channel business of Wal-Mart, China Resources, Yonghui increased 6.6 times YOY in sales.

JD’s data showed that more than 4,000 merchants of consumer electronics doubled their sales YOY on the category’s Super Day.

5. Green consumption on the rise

Ahead of JD618 on May 20, JD.com announced the “Green Impact Initiative” to green-label one million kinds of products conforming to a set of environmentally friendly standards to guide people’s responsible consumption.

As of June 5, over 11.57 million products related to green consumption were sold on JD.com, with sales of electric cars up 200 percent YOY and toilets with water efficiency rating up by 8 times in sales respectively.

6. Farmers’ produce items gain popularity

Agricultural products have been emphasized in this year’s campaign as part of rural revitalization initiatives to promote quality produce and boost farmers’ income. To achieve this purpose, JD’s logistics infrastructure continued to consolidate in rural areas, providing supply chain services for more than 1,000 origins and industrial belts of agricultural specialties all across China.

For instance, transaction volume of kiwifruit grown in Sichuan province increased by more than 10 times compared with last month, while sales of Yangshan peach from Jiangsu province and Dongkui waxberry from Zhejiang province rose over six times month over month.

Moreover, since JD’s logistics network enables the agricultural products to be transported smoothly, it can be seen on JD.com that 51 percent of Inner Mongolia’s lamb went to Beijing and 41 percent of the seafood from Zhejiang province to Sichuan.

7. Responsible supply chain

A responsible supply chain, by JD’s definition, is a combination of both hard and soft capabilities, namely the infrastructure represented by its nationwide warehouse networks and other modernized logistics facilities, and the ability to efficiently integrate all the resources.

As of now, 45 of JD’s “Asia No. 1” intelligent logistics parks and 1,400 warehouses across the country have built a highly integrated logistics infrastructure as well as a network of warehousing and delivery with multiple tiers. The growing logistics network guarantees an end-to-end product circulation, leading to a better customer experience.

JD’s smart supply chain system also synergizes intelligently with 81.2 percent of suppliers of JD’s self-operated stores. With the help of JD’s C2M solution, JC2M intelligent manufacturing platform, the new product launch cycle has been shortened by 67 percent from before to more precisely cater to the target customers.

Technologically, JD Cloud saw a 154.5 percent growth in peak user visits per second as compared to the same period last year. JD Intelligent City Consumption Promotion Platform issued nearly RMB 1 billion yuan of consumption vouchers in more than 10 cities.

 

(vivian.yang@jd.com; liujun215@jd.com)

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